How to get a loan against the interest rate of mutual funds and key details money moguls

New Delhi. If you invest in mutual funds, then this is a great advantage. If you suddenly need money for some job and you have mutual funds, then you don’t have to worry. You can also easily take a loan against them.

Indians mostly borrow against collateral such as property, agricultural land, gold, or vehicles. However, as digitization progresses, consumers can easily take advantage of digital assets, such as mutual funds, to obtain loans.

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as overdraft service
Loan against mutual fund units is provided in the form of an overdraft facility and interest is charged on the amount used as credit. The loan amount in this case largely depends on the value of the mutual fund units used against the loan.

Loan against mutual fund units
An investor can borrow against mutual fund units that he owns at a bank or financial institution. The loan can be obtained against equity or hybrid funds by contacting any bank or NBFC. You can easily take a loan in mutual funds through online or offline medium.

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Loan amount and interest rates
The loan amount available to the investor depends on the category of mutual fund in which you have invested. Typically 50 to 75 percent of net asset value (NAV). The interest rate at which the loan will be repaid is also subject to the initial terms and conditions agreed upon by the borrower and the bank.

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Tags: Business News, business news in hindi, Loan, Investment fund, Investment funds